When looking to purchase a home you must always firstly be happy with what you are looking to buy. However, there are a number of things you have to watch out for. It is quite common for a Contract of Sale to essentially state, ‘What you see is what you get’.

As the purchaser, you must double check the information on the Contract and to check any information left out of the Contract. The Contract of Sale may disclose a number of things about the property you are looking at, and a solicitor or conveyancer may help you with interpreting the Contract and telling you what is contained in the contract.

A solicitor or conveyancer can only interpret what the Contract says and may not be able to help you with physical aspects of the property, such as the buildings on the property or the boundaries of the property. For example, while the Contract may state the boundaries of the property that you are purchasing, there is no way to know for certain unless a property survey is carried out on the land. Other examples are improvements to the buildings on the property, unauthorised additions to the building, or even termite damage to the building.

Surveys and pre-purchase building and pest inspections may reveal some of the matters or defects with the property that are not disclosed on the Contract. Another option is to purchase Title Insurance, which may compensate for repairs to the property as a result of matters not properly disclosed in the Contract.

At the end of the day however, you must be happy with what you buy – so make sure you know what you are buying into!

Conveyancing Enquiry

For more information on our conveyancing services and quotes on our professional fees, please request a Conveyancing Fees quote. One of our experienced property lawyers will contact you to explore how we can assist you with your property transaction.

Kenneth TiAssociate Solicitor - Phang Legal

This website is supported by Phang Legal, a law firm in Parramatta providing fixed fee conveyancing services across Sydney and New South Wales. Kenneth Ti is an associate solicitor with Phang Legal.

Since you’re reading this, you’re probably interesting in buying or selling property – right? That’s a reasonable assumption since this website is ALL about conveyancing and property transactions. You might be a first home buyer, or you might be an experienced property investor, but what we’re interested in is who do you (or who would you) use to assist you with your property transactions. Do you retain a lawyer or solicitor? Do you use a licensed conveyancer? Or maybe, you do it yourself. Let us know and checkout responses from other readers too.

Conveyancing Enquiry

For more information on our conveyancing services and quotes on our professional fees, please request a Conveyancing Fees quote. One of our experienced property lawyers will contact you to explore how we can assist you with your property transaction.

Conveyancing Services Parramatta – Renegotiate before it’s too late

Clients often ask us whether they can renegotiate the Contract for Sale of Land during the cooling off period. The simple answer is ‘yes’. So what next?

Understand your bargaining position

While it is possible to renegotiate the contract during the cooling off period, it may not be easy. You should understand your bargaining position before attempting to renegotiate the contract. For example, you have already signed the contract and paid a deposit, and because of that you are considered to have agreed and accepted the terms and conditions of the contract as they are. If you do nothing from this point, the contract becomes unconditional and you will be bound by it. The cooling off period gives you the right to get out of the contract, and because of that possibility – it opens the door to possible renegotiation while that right exists.

By law, the cooling off period expires at 5pm, on the 5th business day after the exchange date. During this time, you (as the buyer) can get out of the contract and avoid the legal and financial consequences of breaching an unconditional contract. The financial cost of exercising this right is 0.25% of the purchase price.

Other questions to answer

What do you wish to renegotiate and how does it equate to a financial cost and does it exceed 0.25% of the purchase price?

How much have you already spent on legal fees and inspection costs? Will it cost more to renegotiate, or more for starting again with another property?

What are the other market factors? Is it a ‘buyer’s market’ or a ‘seller’s market’?

How long have you been looking for a property? Are you prepared to go back to the market if the deal falls through?

How long has the property been on the market? Is the seller willing to go back to the market if the deal falls through?

Is it a unique property, or is it similar to other properties (ie, apartments, townhouses, or project homes)? Are there other alternatives that may be more open to renegotiation?

Is it subject to a current mortgage/loan or is it fully owned? If there is a loan, there may be a financial incentive for the seller to ensure the sale proceeds as quickly as possible.

If it is an owner occupied property, is the seller buying another property and under time pressures to move?

If it is an investment property, is it currently tenanted or is it vacant? If the property is vacant and not earning rental income, is the seller more keen to secure a sale?

There are many different considerations when deciding whether to renegotiate a contract during the cooling off period, and many different strategies to influence the outcome of that renegotiation. Your lawyer or conveyancer may assist you with this process, even though once you have signed the contract you are considered to have accepted the terms and conditions of the contract.

What are your experiences?

If you have had your own experiences, both successful or unsuccessful, with renegotiating a contract during the cooling off period, we would like to hear from you and invite you to leave your comments below.

Conveyancing Enquiry

For more information on our conveyancing services and quotes on our professional fees, please request a Conveyancing Fees quote. One of our experienced property lawyers will contact you to explore how we can assist you with your property transaction.